GHG Protocol is currently in the process of updating its corporate suite of standards and guidance, including its Scope 2 Guidance (originally published in 2015). On July 14, 2025, the GHG Protocol Independent Standards Board (ISB) voted on the Scope 2 revisions proposed by the Scope 2 Technical Working Group (TWG) to be included in the forthcoming public consultation period. The public consultation period will be an opportunity for stakeholders to feed into the standards development process on these topics and to provide their feedback on the proposal. 

The ISB approved the proposed location-based and market-based method revisions for public consultation starting this fall (10 yes, 1 no vote in both cases). These revisions include new emission factor hierarchies and new regional and hourly matching criteria, but do not require hourly data in all cases and include important feasibility measures, detailed below. These updates aim to improve the integrity and precision of accounting for corporate scope 2 emissions (also known as emissions from purchased and consumed electricity, steam, heat and cooling). The ISB vote is a key milestone as GHG Protocol prepares to solicit public feedback on the draft revisions via an online survey process, which will be open for 60 days beginning this fall. 

The ISB affirmed the importance of recognizing the broader climate benefits of actions beyond the value chain, such as avoided emissions from carbon-free electricity procurement, and indicated that related concepts proposed in the Scope 2 TWG’s newly developed Marginal Impact Method (MIM) proposal should continue to be explored through the cross-sectoral Actions and Market Instruments (AMI) workstream. While the MIM will not advance in its current form under the Scope 2 public consultation process (7 members voted not to continue this work under the scope 2 TWG, 4 voted yes), the ISB recognized the valuable groundwork laid by the Scope 2 TWG and determined that further development should proceed through the AMI TWG to ensure alignment across all sectors , not just the electricity sector. This decision reflects a strategic commitment to consistency, integrity, and global applicability across the full GHG Protocol framework. To help inform this next phase of work, the Scope 2 public consultation will include questions on how to measure the broader climate benefits of clean electricity purchases, which will inform development of future guidance across all sectors. 

Here are four key takeaways regarding the status of the Scope 2 revisions process. Further below is a more detailed overview of the scope 2 revisions the Independent Standards Board approved for the public consultation period. 

1. The ISB decision marks one important step in the Scope 2 revision process.  

Scope 2’s upcoming public consultation is one phase within a broader, multi-year effort to update the GHG Protocol corporate suite of standards. While this is a significant step forward, additional work lies ahead. Following public consultation later in 2025, finalized revised text on these key Scope 2 requirements is anticipated by mid-2026. A second consultation on remaining topics will follow, with final publication of the full revised Scope 2 Standard and the rest of the Corporate Standard suite planned for the end of 2027. The possibility of pilot testing remains under consideration and will be determined based on input received during the revision process. 

In the near term, the Scope 2 workstream will finalize the draft revisions to the location-based and market-based methods, including feasibility measures, for release in the public consultation. In recognition of the importance of consequential accounting for the electricity sector, the consultation will also include questions about electric sector avoided emissions, additionality, and related topics. Input received will help inform the next phase of cross-sectoral work under the Actions and Market Instruments (AMI) workstream.  

2. Soon stakeholders can provide open input on the draft Scope 2 revision. 

We encourage all interested stakeholders to participate in the upcoming scope 2 public consultation. The best way to stay up to date on the public consultation period is to subscribe to GHG Protocol’s email distribution list via this form. We will be providing more information about the public consultation process early this fall. The format is expected to be a public survey with draft revised text and questions related to that text or the detailed topics more broadly. 

3. GHG Protocol is continuing to follow the set revision process and plan for Scope 2. 

GHG Protocol originally launched the standards revision work in November 2022, with an initial stakeholder consultation soliciting extensive feedback on the current corporate suite of standards. The revision of each standard, including Scope 2, follows a multi-year, multi-step plan, aligning with the GHG Protocol Standard Development and Revision Procedure. The ISB vote and the forthcoming release of the draft scope 2 revisions adheres to this planned process. GHG Protocol remains fully committed to transparency, integrity, and inclusiveness in its work and is grateful for all stakeholder input which is shaping the outcomes along this process. 

4. The Actions and Market Instruments (AMI) TWG will continue work on accounting and reporting of GHG impacts of actions, including avoided emissions in September.   

The Actions and Market Instruments workstream will lead the development of standardized, sector-agnostic requirements and guidance for quantifying and reporting GHG impacts of actions, including avoided emissions, leveraging the progress made by the Scope 2 TWG and soliciting input from relevant electricity sector experts and many other industry sectors. GHG Protocol will prioritize accelerating progress under the Actions and Market Instruments Technical Working Group and aligning timelines across working groups. 

Scope 2 Revisions Which Were Approved for Phase 1 Public Consultation  

• Revisions to Location-based Method and Market-based Method 

The revisions to the location-based method include a new emission factor hierarchy that prioritizes more accurate accounting over time and across regions but only requires this level of detail when the necessary activity data is available and the emission factors are free and publicly accessible. The revisions to the market-based method focus on improving the accuracy of clean energy inventory claims by introducing requirements for hourly and geographic matching, but hourly matching is only required when companies are making voluntary clean energy claims. It is not required when no such claims are being made.  

To support feasibility, the draft includes exemptions for smaller organizations, a legacy clause for long-term contracts, and allows estimated hourly data to be used—meaning companies can continue using the annual or monthly consumption data they already collect and match it with hourly generation data. In addition, all new requirements will be phased in over time, giving companies and data providers several years to prepare and adapt. The ISB voted (10 out of 11 members) to move these revisions on to public consultation. 

•  Consequential Accounting for the Electric Sector 

For a refresher on how consequential and inventory accounting can work together, please refer to GHG Protocol’s overview of the two methodologies. The proposed Marginal Impact Method would use aspects of consequential accounting methods to quantify the system-wide impacts of both electricity load and procurement and nets the two values to report one “net impact” metric. The ISB voted (7 out of 11 members) that this new metric should not advance to public consultation in its current form. 

It should be noted that the Independent Standards Board recognizes the importance of consequential accounting methods for avoided emissions and with its decision is seeking to build on the work already conducted within the Scope 2 TWG. The ISB directed this work to continue within the Actions and Market Instruments TWG, which will enable the issue to be addressed in a cross-sector manner (as opposed to in isolation for just the electric sector under Scope 2). Additionally, the ISB encouraged the Scope 2 workstream to include sector-specific questions regarding avoided emissions in its phase 1 public consultation to better understand the needs of the electric sector.